Is Innodata, Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Innodata, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued given its high P/E ratio of 50, which is significantly above the peer average of approximately 39.15 for comparable companies like Global Blue Group Holding AG, which has a P/E of 28.57, and CleanSpark, Inc., which is rated attractive with a P/E of -91.33. Additionally, Innodata's EV to EBITDA ratio stands at 46.83, further suggesting a premium valuation compared to its peers.
Despite the high valuation metrics, Innodata has demonstrated remarkable performance, with a staggering 1-year stock return of 408.81%, vastly outpacing the S&P 500's return of 17.14% over the same period. This impressive performance may contribute to the perception of overvaluation, as the company's PEG ratio of 0.04 indicates potential for growth relative to its price. Overall, while Innodata has shown exceptional returns, its current valuation metrics suggest it is overvalued in comparison to its peers.